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For Immediate Release

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Pepco Seeks Adjustment in Maryland Delivery Rates

Request Supports Reliability Investments, Customer Service, Hurricane Costs

WASHINGTON, D.C. - Pepco, a subsidiary of Pepco Holdings, Inc., today asked the Maryland Public Service Commission to authorize an adjustment in electric delivery rates to bolster the company's ongoing efforts to maintain safe and reliable service, provide enhanced customer service technology and support the additional resources that were needed to restore service to customers after Hurricane Irene in August.

If approved, the proposed $68.4 million request would result in a 4 percent increase on a typical Maryland residential customer's bill, effective July 2012. The monthly bill for a residential Standard Offer Service customer using 1,000 kilowatt hours a month would increase by $5.56 per month, from $137.46 to $143.02. The impact on commercial and industrial customers would vary by usage.

"We are dedicated to maintaining safe and reliable service and enhancing the customer experience through replacing and upgrading electric system infrastructure, trimming trees that threaten power lines, and installing advanced technologies," said Thomas H. Graham, Pepco Region President."

The company invested approximately $507.1 million in infrastructure enhancements from 2007 through 2011 and plans to spend an additional $796.1 million through 2016 in order to meet customer growth and maintain a reliable electric system.

For more information and updates, visit www.pepco.com and follow Pepco at www.twitter.com/PepcoConnect.

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Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers safe, reliable and affordable electric service to more than 789,000 customers in Maryland and the District of Columbia.

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